application exercise

12/10/11 Application Exercise

Application Exercise

BLaw Assignment #2Time : 15 Min. Max. Marks- 15

Q. 1. In the fo lowing questions choose the most appropriate answer..

1. One cannot plead doctrine of frustration for one’s own inaction a. Trueb. Falsec. Partly true d. Partly false

2. ‘A’ contracts to take in cargo for B at a foreign port. Later, A’s government declares war against the country in which the port is situated. The contract-

a. Is void ab initio b. Bocomes void c. Is validd. Is voidable at B’s option

3. Where time is the essence of the contract, and the promisor fails to do the agreed things on or before specified time, the contract is-

a. contingent b. i legalc. voidable at the option of the promisor d. voidable at the option of the promisee

4. A promisor can perform the

promise a. himselfb. through his authorized representative competent to performc. through unauthorized agent d. either a or b

5. Quasi contracts are exceptions situations wherein-

a. one party is bound to pay money in consideration of something done or suffered by the other party

b. no contractual relation exists between the partiesc. No agreement has been entered into by the parties d. A l the above

6. An agreement contingent on happening of an impossible

event- a) is validb) is voidable

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c) is i legal

d) becomes void when impossibility is discovered

7. In case of novation,

a. old contract need not be performed b. new contract must be performedc. both a and b d. either a or b

8. A person to whom money is paid by mistake or under

coercion, a. May use it for his advantageb. Must repay itc. Need not repayd. None of the above

9. A agrees to pay B Rs. 1,000 if two straight lines enclose a space. The agreement is- a. validb. voidc. i legald. voidable

10. Where a promisor has offered to perform his promise and the promise refuses to accept the performance-

a. the promisor is not responsible for non-performanceb. the promisor does not lose his rights under the contract c. either a or bd. both a and b

11. Frustration of contract occurs when there

is a. commercial impossibilityb. supervening impossibility c. both a and bd. either a or b

12. Performance of a contingent contract is dependent on

the a. happening of the co lateral eventb. non-happening of the co lateral event c. either (a) or (b)d. neither (a) nor (b)

13. A makes a contract with B to se l a horse to B at a specified price, if C, to whom the horse had been earlier offered, refuses to buy. This contract cannot be enforced by law-

a. at a lb. unless and until C refuses to buy the horse

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c. unless and until B refuses to buy the horse d. unless and until A refuses to se l the horse

14. A moneylender promises to give a loan of Rs. 1 lakh to a borrower if he so chooses. This is a contingent contract

a. Trueb. Partly true c. Falsed. None of the above

14. Anup Jalota make a contract with Zee TV to sing two nights every week for nexttwo months at a consideration of Rs. 1 lakh for each performance. On sixth night Mr. Jalota wi lfu ly absents himself but turns up on the seventh night at the appointed time and he is a lowed to perform that night-

a) The contract is voidable at the option of Zee TVb) The contract becomes voidc) Zee TV can put an end to the contractd) Zee cannot put an end to the contract but can claim damages from Anup Jalota for

his absence on sixth night

16. A agreed to supply certain goods at a specified price to B. As a result of an increase in raw material prices and labour costs, it is no longer profitable for A to supply them at the agreed price. In this case-

a. Contract becomes voidb. A cannot be excused for non-performance c. Contract gets frustratedd. Contract is voidable at the option of A

17. A quasi contracta. is an agreement b. is a contractc. has only a legal obligation d. is not any of the above

18. Quasi contracts are based on the principle

of a. self serviceb. service to othersc. there cannot be unjust enrichment of a party at the cost of other d. justice to a l

19. The rule of law is that when money is paid, it is to be applied first as per the expressed wi

l of a. payerb. payee

c. both a and b d. banker



20. A contract can be discharged by

a. Performance b. Frustrationc. Novationd. Any of the above

21. A l contingent contracts are in the nature of wagering

agreement- a. trueb. falsec. and hence, are void d. none of the above

21. If a new contract is substituted in place of an existing contract, it is ca led

a. alteration b. novation c. waiverd. recession

22. A saves B’s property from fire. A is entitled to compensation from B, if the circumstances show that Aintended to act

a. gratuitouslyb. non-gratuitously c. either a or bd. neither a nor b

24. An offer of performance is known

as a. offerb. tenderc. proposald. acceptance

25. Anticipatory breach of contract applies where a contract involves a. A stray transactionb. Series of performances c. i legal transactionsd. a wager

26. Tender of performance is valid if it is

of a. proper quality and quantityb. At proper time and place c. Is unconditionald. A l the above

27. Certain relations resembling those of a contract are ca led a. Implied contracts



b. Quasi contractsc. Deemed contractsd. Unforeseen contracts

28. A who supplies the wife and children of B with necessaries suited to his condition in life is entitled to be reimbursed from

a) B persona ly b) B’s propertyc) B’s wife and children d) the court

29. A finder of lost goods is a

a. bailee b. bailorc. True owner d. Thief

30. Doctrine of frustration is applicable when the supervening impossibility creeps in subsequent to the making of contract but before the time of actual performance-

a. true b. falsec. partly trued. a l the above

application exercise

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